How

C

when.

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(b) above for the same reason. We will so inform Mr Heap.

(a) Our Legal Adviser has pointed out that not all the

companies listed are British companies per se: some are subsidiaries of British companies. There is no objection in

principle to their inclusion, but the position should be

clarified by the addition of a footnote to the list as

follows:

"Where a holding company qualifies under one of the six

categories, and the Committee is satisfied that the holding

company has effective control of a group of companies, such companies have also been defined as British".

Mr Heap will be advised accordingly.

6.

As soon as Ministers have approved the list, it will

need to go to the Governor for his consideration. Subject to the Governor's approval, the list would then be ready

for publication.

7. It is for consideration, however, whether publication of

the list should be held up:

(a) until after Lord Caithness' visit; and

(b)

until the remaining "difficult" companies have been

fully considered, so that those determined to be British

can be included in the same list.

The advantages of such a delay would be that press and

public interest would be minimised during the Minister's

visit to Hong Kong; and the eventual publication of the

single list would help to avoid focusing public attention on

the relatively controversial marginal companies. On the

other hand, it is important that publication of the list is

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